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Accounting. Need help. Managerial accounting. is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-

Accounting. Need help. Managerial accounting. image text in transcribed
is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight- line method. Yappy requires a 10% return on all new investments Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment The projected annual revenues and costs of the new product that will be produced from the equipment are Less cost and expenses: $240,000 Manufacturing costs.$145,000 ncome before income taxes . Income tax expense Net income Selling and administrativ55.000 200.000 40,000 18,000 $22.000 9%| | 18%) 20% 3 2.5771 2.5313 2.4869 2.4437 2.4018 2.3612 2.2832 2.1743 2.1065 43.3121 3.2397 3.1699 3.1025 3.0374 2.9745 2.8550 2.6901 2.5887 5 3.9927 3.8897 3.7908 3.6959 3.6048 3.5172 3.35223.1272 2.9906 6 4.6229 4.4859 4.3553 4.2305 4.1114 3.9975 3.7845 3.4976 3.3255 75.2064 5.0330 4.8684 4.7122 4.5638 4.4226 4.1604 3.8115 3.6046 85.7644 5.5348 5.3349 5.1461 4.9676 4.4988 4.4873 4.0776 3.8372 9 6.2469 5.9953 5.7590 5.5371 5.3283 5.1317 4.7716 4.3030 4.0310 8%| 10% 11%, 12% 13% | 15% Instructions: (a) Compute cash payback period. (b) Compute net present value. (c) Internal rate of return (d) Annual rate of return Indicate whether the investment should be accepted or rejected? Explain

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